back to article US changes rules on tax credits for electric cars to cover American-made only

Changes to US tax credits for buyers of electric vehicles and hybrids go into effect tomorrow, and the list of qualifying vehicles is quite short: only six US-based companies are present, and several manufacturers that previously qualified have even been cut under the strict new requirements. In a table shared by the …

  1. Derezed


    Protectionism? In the land of the free (market)?! They’ll be letting them own assault rifles next…

    1. Snowy Silver badge

      Re: News

      Or using the tax system to simulate domestic manufacturing, which could in turn increase tax receipt.

      1. Phil O'Sophical Silver badge

        Re: News

        By taking tax money off everyone, and then giving it back (minus administration charges) to those rich enough to buy a new electric car?

      2. rg287 Silver badge

        Re: News

        Historically, protectionist tariffs have worked really well.

        Admittedly, targetting a specific sector like battery manufacturing - currently dominated by China - is unlikely to cast the USA into a 1930s-style Depression, whilst also addressing geo-political concerns. Of course giving high-earners subsidies to buy $80k cars is also of dubious economic value - in terms of the overall US economy, they'd be better off funding urban redevelopment and public transit in urban areas - which benefits non-drivers and the poor, not just wealthy drivers.

        Accurately identifying where prudent diversification (establishing US-based resource extraction and manufacturing for industries currently dominated by China) ends and protectionism begins is something that will probably only be done accurately in hindsight. So in the meantime, probably a good thing for them to be tightly targetted and limited in scope. But these measures are probably misplaced to start with.

        1. Zippy´s Sausage Factory

          Re: News

          If they're targeting battery manufacturing, I wonder how much longer Tesla will be on the list, given they've just opened a battery factory in China?

      3. I miss PL/1

        Re: News

        They only thing Biden uses the tax system for is to fund his liberal lunatic policies

  2. Anonymous Coward
    Anonymous Coward

    I’d want a discount too

    If I were buying an American made car.

    1. martinusher Silver badge

      Re: I’d want a discount too

      Seriously, is there such a thing? It might have final assembly in the US but subsystems and components could be from anywhere. (A lot are from China these days.)

      1. Dan 55 Silver badge

        Re: I’d want a discount too

        Yes, there is such a thing. Only Chrysler, GM, and Tesla can offer a level of fit and finish that no other manufacturer in the world matches.

        1. NeilPost Silver badge

          Re: I’d want a discount too

          Is that akin to Morris Marina or Vauxhall shove-it from the 70’s ?

        2. vtcodger Silver badge

          Re: I’d want a discount too

          ,,, a level of fit and finish that no other manufacturer in the world matches.

          Unmatched? Not while the workers at Lada can still push an occasional vehicle out of the factory doors.

      2. Jellied Eel Silver badge

        Re: I’d want a discount too

        Seriously, is there such a thing?

        I wondered the same. Aren't a lot of the 'US' cars made in Mexico? Technically I guess that still means they're made in America. But phase 2 of the proposal attempts to drive changes and restart lithium & copper mining in the US. I'm sure there'll be no objections to this.

        Meanwhile, the EPA's imposing new emissions standards to force ICEs off the roads faster than the state of many US roads will. Sales of EVs have been falling, or at the least slowing, and the US still has the challenge of providing a rational and affordable energy infrastructure to fuel EVs, and power the industries it's trying to bring back home.

        Somehow, all that expenditure is going to reduce inflation, but then words don't have the same meanings as they used to.

        1. keith_w

          Re: I’d want a discount too

          And made in Canada as well. However, vehicles made with 75% parts made in the Canada-US-Mexico free trade area count as US made in the US.

      3. Anonymous Coward
        Anonymous Coward

        Re: I’d want a discount too

        Well we make major components for many those here in the UK Don't worry, we've been making NASCAR engines for years, so it not like the USA is not used pretending it's "Made in the USA."

    2. hoola Silver badge

      Re: I’d want a discount too

      And that is the fundamental problem. US car makers manufacturing models for the US market have not understood that things changed.

      Imports offered far better value, options and quality.

      The solution is typical, provide incentives to tempt people to buy something they don't want because it is not as good as the competition.

      I wonder just how many of the critical components are actually made in the US?

      1. John Brown (no body) Silver badge

        Re: I’d want a discount too

        Pretty much the same thing happened to the UK car and motorcycle industry decades ago. It make s a change for the US to copy us rather than vice versa :-)

  3. heyrick Silver badge

    News at Six

    Protectionist America is protectionist.


  4. EricB123 Bronze badge

    Grrrreat Idea!

    So USA government subsidizes cars for the wealthy. Nothing to see here, move along.

  5. Doogie Howser MD

    Funny that lefties criticised Trump for taking a protectionist stand and then Biden arrives and turns the dial to 11 and suddenly it's a good thing!

  6. I miss PL/1

    Biden was right

    America is back. Back to isolationism and protectionist trade to boost democratic poll numbers tied to auto union kickbacks. Yay Biden!!!

  7. I miss PL/1

    Biden needs Tesla. It's the only EV people want because he has the only charging network you can rely on.

    1. VicMortimer

      Not only is it not the EV people want, for a lot of us it's now the EV we won't own.

      Between the elongated muskrat's antics and Tesla's abysmal build quality, it's just not an option.

      Oh, and they're hideously ugly cars, with the Y being the worst offender.

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